[wpcol_2third id=”” class=”” style=””]JUNE NEWS YOU CAN USE
Housing Stats ∙ Contract Changes – What They Mean to You
HOUSTON HOME SALES DECLINE FOR THE FIRST TIME IN THREE YEARS
The lack of residential housing inventory has resulted in Houston’s first home sales decline in three years. Sales volume fell for the first time since May 2011. Single family home sales totaled 7,145 units in May, which is a decline of 7.3% compared to May 2013, according to he Houston Association of Realtors (HAR) report. Inventory increased to 2.8 months after being at 2.6 months since December. The national average is a 5.9 month supply.
According to the latest monthly report prepared by the Houston Association of REALTORS® (HAR):
>>>Read the entire release.
TREC CONTRACT CHANGES – WHAT IT MEANS TO BUYERS AND SELLERS
Just as we get familiar with things, they change. At the beginning of the month there were several changes to the TREC real estate contracts. The most widely used form, 1 to 4 Family Residential Contract (Resale), had several revisions that buyers and sellers will need to be familiar with in order to make informed, educated decisions. Below are a couple of highlights that buyers and sellers should be cognizant of before negotiating a contract.
Paragraph 6A(8): Title Policy and Survey
The “shortages in area” section was changed to allow for negotiation about whether the title policy will be shortened to “shortages in area,” and if so, the seller and buyer can negotiate who pays.
A title insurance policy only covers issues that have been filed at the courthouse. Without an approved survey submitted, the title policy takes automatic exception to any title issues that may have been uncovered by a certified, proper survey. In the past, Texas title insurance has offered coverage for survey issues if the title company reviews and approves a survey acceptable to them, and the buyer pays an additional 5% of the base title policy (in residential transactions). If a title company reviews and approves a survey, then the standard survey exception language contained in the policy will be revised to remove the automatic exceptions to encroachments, discrepancies, protrusions, etc. Revising the exception language permits coverage over these types of survey issues, and an insured can file a claim if an adverse survey issue comes up down the road.
The amendment of the exception is referred to as an Amendment of Survey Exception, Amendment of Areas and Boundaries Exception or survey coverage. Per Texas law, since title companies are not able to verify or insure the physical size of a tract of land, the only survey exception remaining when a title company offers survey coverage is shortages in area.
In the past, the extra coverage was automatic unless a buyer opted out. The new, revised contract offers two options: if the buyer would like the extra coverage (yes or no) and who, the buyer or seller, will be paying the extra premium for it at closing. Whether the buyer or seller pays for the extra coverage is negotiable within the contract.
All in all, the extra survey coverage is usually a very practical investment. If the extra survey coverage is purchased, the buyer will be protected by a title insurance underwriter that has the means to deal with a title claim that results from a survey issue. Without the survey coverage, the buyer, who might not have the resources, would have to pursue a claim against the surveying company. If the buyer accepts an existing survey from the seller rather than a new survey, the surveyor would not have any obligation to the buyer since there was not a contract between the new buyer and the survey company.
Paragraph 7F: Completion of Repairs
Unless the buyer and seller agree otherwise in writing, the seller is now required to use either someone who is licensed to perform the repair or service or someone who is commercially engaged in that repair business, if it’s a job that doesn’t require a license, such as roofing.
Paragraph 16: Mediation
This paragraph was changed from being able to select if mediation will or will not be utilized to mediation being mandatory. There is not an option on the new contracts. Buyers and sellers now must attempt to resolve any contract-related dispute through mediation.
Paragraph 23: Termination Option
In the past, buyer were given two days to deliver their option-period fee to the seller or listing broker. The new contract changes the time to three calendar days.
***This synopsis is not a statement of law or to be taken as legal advise. Please contact your attorney for all legal questions.
[/wpcol_2third][wpcol_1third_end id=”” class=”” style=””]All of the service, for less money!
LESLIE LERNER PROPERTIES WILL:
Shady Acres New Construction
GrayePointe Homes
>>>SEE WHAT PEOPLE ARE SAYING ABOUT LESLIE LERNER PROPERTIES
If you think it is time to buy or sell a home, remember to call Leslie Lerner Properties at 713.489.9900. Leslie Lerner Properties is the Home of Flat Fee Listings and Rebated Commissions. A great amount of information can be found at www.LeslieLernerProperties.com. Leslie Lerner Properties offers all of the service for less money, when buying or selling a home.
Like Leslie Lerner Properties on Facebook!
[/wpcol_1third_end]